NEW YORK ( TheStreet) -- Medidata Solutions (Nasdaq: MDSO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Technology industry average. The net income increased by 40.6% when compared to the same quarter one year prior, rising from $13.32 million to $18.73 million.
- The revenue growth significantly trails the industry average of 61.7%. Since the same quarter one year prior, revenues slightly increased by 1.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MDSO's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MDSO has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for MEDIDATA SOLUTIONS INC is currently very high, coming in at 77.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 38.90% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 300.83% to $2.41 million when compared to the same quarter last year. In addition, MEDIDATA SOLUTIONS INC has also vastly surpassed the industry average cash flow growth rate of 31.00%.
-- Written by a member of TheStreet RatingsStaff